Brief: IFF Q2 Adjusted EPS USD 1.15 Vs. IBES Estimate USD 1.12

International Flavors & Fragrances

05/08/2025 21:15

Overview

IFF Q2 2025 revenue of $2.76 bln beats analyst expectations, per LSEG data

Adjusted EPS for Q2 exceeds estimates, reflecting improved profitability, per LSEG data

Company announces $500 mln share repurchase authorization and divestiture of soy business

Outlook

IFF expects full-year 2025 sales of $10.6 bln to $10.9 bln

Company maintains 2025 sales growth outlook of 1% to 4%

IFF sees 2025 adjusted operating EBITDA of $2 bln to $2.15 bln

Company expects foreign exchange to impact sales growth by 1%

Result Drivers

CURRENCY NEUTRAL SALES - Currency neutral sales increased 3% driven by broad-based growth, particularly in Taste and Health & Biosciences

PRODUCTIVITY GAINS - Improved profitability attributed to volume growth, favorable net pricing, and productivity gains

PORTFOLIO RESTRUCTURING - Divestitures of Pharma Solutions and planned sale of soy business align with margin enhancement strategy

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$2.76 bln
$2.70 bln (11 Analysts)
Q2 Adjusted EPS
Beat
$1.15
$1.12 (12 Analysts)
Q2 EPS
$2.38
Q2 Net Income
$612 mln
Q2 Adjusted EBITDA
Beat
$552 mln
$546.10 mln (12 Analysts)
Q2 Gross Profit
$1.03 bln
Q2 Operating Income
$198 mln
Q2 Pretax Profit
$534 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 4 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the food processing peer group is "buy"

Wall Street's median 12-month price target for International Flavors & Fragrances Inc is $90.00, about 22.1% above its August 4 closing price of $70.15

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nBw6gvmKSa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)